After 11 years, the RBS logo is to vanish from Scots high streets as it rebrands with tartan, tweed and heather imagery.

It’s part of a £175million makeover north of the border, to attempt to distance the bank from former boss Fred “the Shred” Goodwin and his cronies who toppled it.

But last night, Scottish Labour demanded the bank direct spending to small firms and customers seeking mortgages.

Shadow Finance Secretary Iain Gray added: “RBS is still 81 per cent owned by the taxpayer. I hope this is more than a marketing tactic.” All 290 Scots branches will feature floor to ceiling images of Scottish landmarks and include soft fabric from the Isle of Bute.

The RBS logo will also vanish from branches in England and Wales after the bank was forced to sell them as part of the £45.5billion government bail-out in 2008.

In Scotland, the RBS logo has already gone in 14 banks.

An RBS spokesman said: “This new plan was introduced to win back our customers’ trust. We are reconnecting with our heritage.

“Our new signs will say Royal Bank of Scotland, the name the bank started with in 1727.”

Stuart Mackinnon of the Federation of Small Businesses said: “While RBS wants to make a break from the past, they also need to start offering genuinely different products on the high street.”